A law/loans tip rolled into 1. A trust is not a separate legal entity but is a relationship between the trustee and the beneficiaries. Therefore a trust cannot borrow! It is the trustee that borrows money and does so in its capacity as trustee. Where there is an individual trustee the loan will be in the name of that person. Where there are 2 trustees the loan will be in both names. Getting a loan as trustee has basically the same consequences as getting a loan on your own. You will personally be liable for the debt and they loan will count as a debt when assessing further borrowings. The trustee will likely be indemnified out of the trust assets, but if they are not enough there personal assets will be exposed. Where the trustee is a company a lender will not lend, usually, to a company without a personal guarantee by all the directors of a company. There used to be some lenders who did not require personal guarantees where the LVR was low, but most lenders will ask for one from all directors and sometimes from shareholders. Since the lenders ask for personal guarantees from all directors the number of directors can be limited to reduce the need for giving guarantees. (this has other consequences such as control of the trust). From a borrowing point of view the ideal trustee structure would be a company trustee with one director. This will limit the guarantor's to one person. Where this person does not have enough income to qualify for the loan then additional guarantors can be offered - if and when needed. This can be done without the additional person becoming director if the other person is a shareholder or a beneficiary of the trust. Being a director is risky so should be avoided if possible for asset protection reasons. Most lenders would probably allow a spouse of the director to offer a guarantee if they are also beneficiaries of the trust. NOTE that structuring a trustee set up this way may be good for borrowing but there may be other disadvantages to the structure from a legal point of view so legal advice should be sought before decided in structure. Also there are some lenders who insist on obtaining personal guarantees from all named adult beneficiaries of a trust. This is not good as additional guarantees may be required from persons who may not want to give guarantees and who may not even know of the existence of the trust. Other lenders require a letter from named beneficiaries stating that they have no objections to the trustee borrowing, again not good. However not naming people in a trustee may, or may not have consequences as to who a beneficiary of the trust will be - so legal advice is essential.